Xfire's video compresses (I think?) if you choose to upload it to their servers, and leaves both original and compressed files on your hard drive. You can just start the upload and then cancel it after "Encoding" is complete for a small file, then delete the original (or, obviously, let it upload).-wreckedcarzz
Yeah, Xfire does have a handy auto-compress/upload feature which VirtualDub obviously lacks. I've never used them because I'm a bit of a control freak when it comes to videos

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Those are some serious FPS hits you're getting with Xfire. I imagine racing games are essentially unplayable in the 10-15fps range.
I agree that the guide is rather daunting, but the majority of the work is in the first-time setup process. When I want to record a game these days it takes me less than a minute to have the apps open and configured. Of course, I'm the kind of guy who also writes batch files to launch multiple apps or simply uses a few keystokes in Launchy.

When you have time give it a shot. I'm very interested to see what kind of fps you can get with VirtualDub compared to Xfire.
I had tried descibed solution and found a problem with every game I have installed:
screen is blinking from time to time!-fenixproductions
Sorry it didn't work out for you.
Did you read through the guide section where I discuss hardware overlays? Since VirtualDub just records your screen and doesn't 'hook' into DirectX, it often captures the overlay's key color (black frames) instead of just the game's rendered frames. There are a few workarounds listed in the guide.
This is why I'm interested to find out if any of the coders around here have graphics programming knowledge. If someone could figure out or code a solution to disable overlays, the flickering frames should not be a problem. Any takers?